Credit repair scams are prevalent today. Consumers are bombarded with advertisements on the television, radio and Internet and even receive unsolicited phone calls. Claims of overnight fixes often entice desperate consumers; however, such guarantees are always false. Credit repair cannot be done overnight, even by so-called professionals. Rebuilding credit, correcting errors and improving your credit score are all things that can be done with time and patience, and they can all be done yourself for free.
Step 1
Examine each credit report carefully. Go over each piece of information, double checking its accuracy. Everything listed on your credit reports, from your name and previous addresses to the type of account, must be accurate. Check every balance, recent payment, dates and monthly payment amounts. Highlight any incorrect information.
Step 2
Compose letters to the collection agencies and original creditors if you feel that information is in error. Request validation on the accounts in question. Ask for copies of account statements and any other information you feel necessary. Send the letters via certified mail. Keep copies of every letter you mail, along with the return receipt. In the event you find yourself in court, you need to have copies of everything, proof you mailed it and proof they received it.
Step 3
Send written disputes to the credit bureaus for any information you feel is incorrect or inaccurate. Do not file your dispute online; instead mail a detailed letter to the credit bureaus. Be sure to dispute with each bureau individually. Send your letters certified mail; return receipt is optional. The credit bureaus will perform an investigation and mail you the results along with a new copy of your credit report within 30 days.
Step 4
File complaints with the attorney general's office of your state and the state where the collection agency is based. Also file a complaint with the Better Business Bureau. Not all collection agencies maintain a rating through the Better Business Bureau, but some do and want to protect it. Keep copies of every complaint you file. You may need to follow up on each complaint if you do not receive a response within 30 days.
Step 5
Negotiate settlements with creditors and collection agencies to reduce debt. Start out by offering no more than 10 percent and ask for complete deletion of the trade line in exchange for payment. If the creditor refuses to delete the record, ask that it be updated to paid status instead of settled. Be sure to get the creditor's agreement in writing before making the settlement payment.
Things You'll Need
- Copies of all three credit reports (Equifax, Experian and TransUnion)
- Highlighter
- Paper and pen or computer and printer
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